During recent financial volatility, property has again entered the spotlight as a seemingly attractive investment option. FundSource looks into property investment and provides the information you REALLY need to know.
Wednesday, April 9th 2003, 9:44PM
by The Landlord
New Zealand?s long love affair with property has resulted in New Zealanders having one of the highest home ownership rates in the developed world. This passion for property was strengthened in the high inflation era of the 1970?s and early 1980?s where exceptional price rises were a way of life.
Twenty years on however, in today?s low inflation environment, it pays to be more cautious about property investment. Capital gains are now smaller and property is no longer needed as an inflation hedge. Recently however, renewed interest in property and other alternative forms of investment has been supported by uncertainty surrounding equity markets, the recent fall in fixed interest yields and the resulting increase in bond prices.
